Read about Checklist while buying and selling a second-hand car. For more information, check out the car insurance policy from Kotak General Insurance.
Buying or selling a used car is a complicated process that requires a lot of research and preparation. Unfortunately, most people need to take the time to do this, resulting in them being taken advantage of or getting a bad deal. To help you navigate this process, here is a comprehensive checklist for buying and selling second hand cars.
Here is a checklist of the key things to consider when buying or selling a second-hand car:
1. Vehicle’s condition
When you are buying second hand car, look for one that is in good running condition and is valued at a reasonable price. The same goes for when you are selling your car. A well-maintained vehicle will help you get a higher value by appealing to potential buyers.
2. Registration documents
The instances in which the automobile has been sold is indicated by the RC book's owner serial number or smart card. If you are the seller, make sure you supply the buyer with any additional documents that must be checked, such as the official bill, NOC from the auto loan provider, as well as road tax receipt.
3. Auto insurance
A car's insured value can be an essential fact during value regulations of used vehicles. If you are buying second hand car, make sure you track the NCB received over the last 2-3 years. If you are selling second hand car, you should make sure to transfer the ongoing car insurance policy in the buyer’s name.
Here is a list of paperwork required:
• Car sale proof with receipt,
• Car delivery proof with the signature of both parties,
• Self-attested copy of the PAN card of both the buyer and the seller, address proof and two recent colour photographs.
• Documents needed by the Regional Transport Office:
i. Three copies of Form 28 with an imprint of the chassis number.
ii. Two copies of Form 29 and 30 each.
iii. One copy of Form 35 and NOC from the bank if the car is still on a car loan
iv. Clearance certificate and sale affidavit from the seller for transfer of the car to the buyer’s name
• Documents needed to be handed over to the seller:
i. Old RC,
ii. Valid Pollution Under Control certificate
iii. Valid insurance policy papers
iv. Application of transfer of insurance policy if the same is being transferred to the buyer.
v. Duplicate car keys.
5. Modifications available
Older automobiles may be inexpensive, but they may be tough to modify. A recent model is preferred, particularly if it is reasonably priced. Both parties should be informed of the potential for vehicle modification.
It is important to note that the sale of the vehicle is not made on the basis of any oral agreement. Make certain you have a formal contract that includes the state of the automobile, the sale amount, the exact date of ownership transfer to the buyer, and registration and insurance information.
7. Records of car maintenance
Having accurate logs of maintenance and repairs conducted on the vehicle might assist you in negotiating a higher price as a car seller. In addition to helping you appear to be a highly responsible car owner; the paperwork will also show that your automobile was properly serviced at all times.
Buying second hand car or selling one can be both thrilling and stressful. It's a big decision, and it's important to make sure you are prepared and informed before making any final decisions. As you can see, there are plenty of factors to take into consideration when buying or selling a car. If possible, talk to the owner and be honest about your intentions before you decide on whether to buy or sell. After all, it's better to be safe than sorry.